PBGC 120% Lump Sum Factor at deferred age 65

[§#$%!]

It's been a long time since I determined a PBGC annuity factor at 120% and I can't remember if there was a setback on UP-1984 unisex. Can someone confirm that I'm on the right track? Using a rate of 4.75%, I get a factor of 11.1038 at 65 using a setback of 6.

Thanks

[Mike Preston]

Are you asking for the rate determined using 4.75% times 120% (which would be 5.70%) using the UP84 (unisex) table set back six years? If so, I get 11.56209 as an annual rate and 11.1038 as 1/12th the monthly rate.

So, I think you are spot on.

[§#$%!]

Should I be using a setback of 6 for lump sum purposes, which I think was a female rate on the unisex table?

[david rigby]

The UP84 table is unisex. The base table is defined as "appropriate" for a population of 10% - 30% female. Use the midpoint of 20%. Then, the table was defined so that each one-year setback(setforward) is equivalent to a 20% increase(decrease) in the female portion of the population. Conclusion: a one-year setforward is 100% male, and a four-year setback is 100% female.

Note that this table is significantly out-of-date. Be sure it is appropriate for your use.